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S1126aa,aaH..........................................by JUDICIARY AND RULES
MOTOR VEHICLE LIABILITY - Amends existing law to require that a minimum
level of motor vehicle liability coverage be provided to certain persons;
to revise liability provisions relating to liability for imputed
negligence; and to provide nonliability to the owner that rents or leases a
motor vehicle under certain circumstances.
02/12 Senate intro - 1st rdg - to printing
02/13 Rpt prt - to Com/HuRes
02/23 Rpt out - to 14th Ord
03/01 Rpt out amen - to engros
03/02 Rpt engros - 1st rdg - to 2nd rdg as amen
03/05 2nd rdg - to 3rd rdg as amen
03/06 3rd rdg as amen - PASSED - 33-2-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Hammond,
Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai, McGee, McKague, McKenzie, Pearce, Richardson, Schroeder,
Siddoway, Stegner, Stennett, Werk
NAYS -- Cameron, Goedde
Absent and excused -- None
Floor Sponsor - Hill
Title apvd - to House
03/07 House intro - 1st rdg - to Transp
03/15 Rpt out - to Gen Ord
Rpt out amen - to 1st rdg as amen
03/16 1st rdg - to 2nd rdg as amen
03/19 2nd rdg - to 3rd rdg as amen
03/20 3rd rdg as amen - PASSED - 66-1-3
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chew, Clark,
Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
Henbest, Henderson, Jaquet, Killen, King, Labrador, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring,
Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
Shepherd(8), Shirley, Shively, Smith(24), Snodgrass, Stevenson,
Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35)
NAYS -- Smith(30)
Absent and excused -- Chavez, Kren, Mr. Speaker
Floor Sponsors - Wood(35) & Ringo
Title apvd - to Senate
03/21 Senate concurred in House amens - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
03/22 2nd rdg - to 3rd rdg as amen
Rls susp - PASSED - 33-2-0
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Hammond,
Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai, McGee, McKague, McKenzie, Pearce, Richardson, Schroeder,
Siddoway, Stegner, Stennett, Werk
NAYS -- Cameron, Goedde
Absent and excused -- None
Floor Sponsor - Hill
Title apvd - to enrol
03/23 Rpt enrol - Pres signed
03/26 Sp signed - To Governor
03/30 Governor signed
Session Law Chapter 307
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1126
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO MOTOR VEHICLE LIABILITY; AMENDING SECTION 49-1212, IDAHO CODE, TO
3 REQUIRE THAT A MINIMUM LEVEL OF MOTOR VEHICLE LIABILITY COVERAGE BE PRO-
4 VIDED TO CERTAIN PERSONS; AND AMENDING SECTION 49-2417, IDAHO CODE, TO
5 REVISE LIABILITY PROVISIONS RELATING TO LIABILITY FOR IMPUTED NEGLIGENCE.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 49-1212, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 49-1212. EXPRESSED, PERMITTED AND IMPLIED PROVISIONS OF MOTOR VEHICLE
10 LIABILITY POLICY. (1) An owner's policy of liability insurance shall:
11 (a) Designate by explicit description or by appropriate reference all
12 motor vehicles with respect to which coverage is to be granted; and
13 (b) Insure the person named therein and any other person, as insured,
14 using any such described motor vehicles with the express or implied per-
15 mission of the named insured, against loss from the liability imposed by
16 law for damages arising out of the ownership, maintenance or use of the
17 motor vehicles within the United States of America or the Dominion of Can-
18 ada, subject to limits exclusive of interest and costs, with respect to
19 each motor vehicle, as provided in section 49-117, Idaho Code.
20 (2) An operator's policy of liability insurance shall insure the person
21 named as insured therein against loss from the liability imposed upon him by
22 law for damages arising out of the use by him of any motor vehicle not owned
23 by him, within the same territorial limits and subject to the same limits of
24 liability as are set forth in subsection (1) of this section with respect to
25 an owner's policy of liability insurance.
26 (3) A motor vehicle liability policy shall state the name and address of
27 the named insured, the coverage afforded by the policy, the premium charged
28 therefor, the policy period and the limits of liability, and shall contain an
29 agreement or be indorsed that insurance is provided in accordance with the
30 coverage defined in this chapter as respects bodily injury and death or prop-
31 erty damage, or both, and is subject to all the provisions of this chapter.
32 (4) A motor vehicle liability policy shall not insure any liability under
33 any worker's compensation law as provided in title 72, Idaho Code, nor any
34 liability on account of bodily injury to or death of an employee of the
35 insured while engaged in the employment, other than domestic, of the insured,
36 or while engaged in the operation, maintenance or repair of any described
37 motor vehicle nor any liability for damage to property owned by, rented to, in
38 charge of or transported by the insured.
39 (5) Every motor vehicle liability policy shall be subject to the follow-
40 ing provisions which need not be contained therein:
41 (a) The policy may not be canceled or annulled as to any liability by any
42 agreement between the insurance carrier and the insured after the occur-
43 rence of any injury or damage covered by the motor vehicle liability pol-
2
1 icy.
2 (b) Satisfaction by the insured of a judgment for injury or damage shall
3 not be a condition precedent to the right or duty of the insurance carrier
4 to make payment on account of the injury or damage.
5 (c) The insurance carrier shall have the right to settle any claim cov-
6 ered by the policy, and if the settlement is made in good faith, the
7 amount shall be deductible from the limits of liability specified in sub-
8 section (1)(b) of this section.
9 (d) The policy and its written application, if any, and any rider or
10 indorsement which does not conflict with the provisions of this chapter
11 shall constitute the entire contract between the parties.
12 (6) Any policy which grants the coverage required for a motor vehicle
13 liability policy may also grant any lawful coverage in excess of or in addi-
14 tion to the coverage specified for a motor vehicle liability policy, and any
15 excess or additional coverage shall not be subject to the provisions of this
16 chapter. With respect to a policy which grants an excess of additional cover-
17 age the term "motor vehicle liability policy" shall apply only to that part of
18 the coverage which is required by this section.
19 (7) Any motor vehicle liability policy may provide that the insured shall
20 reimburse the insurance carrier for any payment the insurance carrier would
21 not have been obligated to make under the terms of the policy except for the
22 provisions of this chapter.
23 (8) Any motor vehicle liability policy may provide for the prorating of
24 the insurance with other valid and collectible insurance.
25 (9) The requirements for a motor vehicle liability policy may be ful-
26 filled by the policies of one (1) or more insurance carriers which policies
27 together meet the requirements of this chapter.
28 (10) Any binder issued pending the issuance of a motor vehicle liability
29 policy shall be deemed to fulfill the requirements for such a policy.
30 (11) When the negligent operation of a loaned vehicle results in the death
31 or injury to a person or personal property, except for the loaned vehicle, and
32 at the time of the negligent operation of the loaned vehicle the operator of
33 the loaned vehicle is insured under a motor vehicle liability policy complying
34 with the financial responsibility law of this state, primary coverage for the
35 death of or injury to a person or personal property, except for the loaned
36 vehicle, shall be provided by the operator's motor vehicle liability policy.
37 The insurance policy of the owner of the loaned vehicle shall provide second-
38 ary or excess coverage for the death of or injury to a person or personal
39 property, however the loaned vehicle owner's insurance shall provide primary
40 coverage for damage to the loaned vehicle.
41 (a) For the purpose of this subsection, "loaned vehicle" means a motor
42 vehicle which is provided for temporary use without charge to the operator
43 by an entity licensed under chapter 16, title 49, Idaho Code, for the pur-
44 pose of demonstrating the vehicle to the operator as a prospective pur-
45 chaser, or as a convenience to the operator during the repairing or ser-
46 vicing of a motor vehicle for the operator, regardless of whether such
47 repair or service is performed by the owner of the loaned vehicle or by
48 some other person or business.
49 (b) Should the owner of a motor vehicle receive any compensation from or
50 on behalf of the operator for the temporary use of the motor vehicle,
51 excluding any compensation provided to the owner as a result of the
52 repairing or servicing of a motor vehicle for the operator, the owner's
53 insurance coverage shall be primary and the operator's motor vehicle
54 insurance shall be secondary or excess.
55 (12) No motor vehicle liability policy providing coverage beyond state
3
1 mandated minimum limits shall provide a reduced level of coverage to any
2 insured's family or household member or other authorized user.
3 SECTION 2. That Section 49-2417, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 49-2417. OWNER'S TORT LIABILITY FOR NEGLIGENCE OF ANOTHER -- SUBROGATION.
6 (1) Every owner of a motor vehicle is liable and responsible for the death of
7 or injury to a person or property resulting from negligence in the operation
8 of his motor vehicle, in the business of the owner or otherwise, by any person
9 using or operating the vehicle with the permission, expressed or implied, of
10 the owner, and the negligence of the person shall be imputed to the owner for
11 all purposes of civil damages.
12 (2) The liability of an owner for imputed negligence imposed by the pro-
13 visions of this section and not arising through the relationship of principal
14 and agent or master and servant is limited to the amounts set forth under
15 "proof of financial responsibility" in section 49-117, Idaho Code, or the lim-
16 its of the liability insurance maintained by the owner, whichever is greater.
17 (3) In any action against an owner for imputed negligence as imposed by
18 the provisions of this section the operator of the vehicle whose negligence is
19 imputed to the owner shall be made a defendant party if personal service of
20 process can be had upon that operator within Idaho. Upon recovery of a judg-
21 ment, recourse shall first be had against the property of the operator so
22 served.
23 (4) In the event a recovery is had under the provisions of this section
24 against an owner for imputed negligence the owner is subrogated to all the
25 rights of the person injured and may recover from the operator the total
26 amount of any judgment and costs recovered against the owner. If the bailee of
27 an owner with the permission, expressed or implied, of the owner, permits
28 another to operate the motor vehicle of the owner, then the bailee and the
29 driver shall both be deemed operators of the vehicle of the owner, within the
30 meaning of subsections (3) and (4) of this section.
31 (5) Where two (2) or more persons are injured or killed in one (1) acci-
32 dent, the owner may settle or pay any bona fide claim for damages arising out
33 of personal injuries or death, whether reduced to a judgment or not, and the
34 payments shall diminish to the extent of the owners' total liability on
35 account of the accident. Payments so made, aggregating the full sum of fifty
36 thousand dollars ($50,000), shall extinguish all liability of the owner here-
37 under to the claimants and all other persons on account of the accident. Lia-
38 bility may exist by reason of imputed negligence, pursuant to this section,
39 and not arising through the negligence of the owner nor through the relation-
40 ship of principal and agent nor master and servant.
41 (6) If a motor vehicle is sold under a contract of conditional sale
42 whereby the title to the motor vehicle remains in the vendor, the vendor or
43 his assignee shall be deemed an owner within the provisions of this section.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
Moved by Moyle
Seconded by Denney
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO S.B. NO. 1126, As Amended
1 AMENDMENT TO SECTION 2
2 On page 3 of the engrossed bill, following line 44, insert:
3 "(7) An owner that rents or leases a motor vehicle to a person shall not
4 be liable under the laws of the state of Idaho or a political subdivision
5 thereof, by reason of being the owner of the vehicle, for harm to persons or
6 property that results or arises out of the use, operation, or possession of
7 the vehicle during the period of the rental or lease if:
8 (a) The owner is engaged in the trade or business of renting or leasing
9 motor vehicles; and
10 (b) There is no negligence or criminal wrongdoing on the part of the
11 owner.".
12 CORRECTION TO TITLE
13 On page 1, in line 5, following "NEGLIGENCE" insert: "AND TO PROVIDE NON-
14 LIABILITY TO THE OWNER THAT RENTS OR LEASES A MOTOR VEHICLE TO A PERSON UNDER
15 CERTAIN CIRCUMSTANCES".
2
Moved by Broadsword
Seconded by Bilyeu
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1126
1 AMENDMENT TO SECTION 1
2 On page 3 of the printed bill, in line 2, following "user" insert: "except
3 as provided in section 41-2510, Idaho Code".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1126, As Amended, As Amended in the House
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO MOTOR VEHICLE LIABILITY; AMENDING SECTION 49-1212, IDAHO CODE, TO
3 REQUIRE THAT A MINIMUM LEVEL OF MOTOR VEHICLE LIABILITY COVERAGE BE PRO-
4 VIDED TO CERTAIN PERSONS; AND AMENDING SECTION 49-2417, IDAHO CODE, TO
5 REVISE LIABILITY PROVISIONS RELATING TO LIABILITY FOR IMPUTED NEGLIGENCE
6 AND TO PROVIDE NONLIABILITY TO THE OWNER THAT RENTS OR LEASES A MOTOR
7 VEHICLE TO A PERSON UNDER CERTAIN CIRCUMSTANCES.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 49-1212, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 49-1212. EXPRESSED, PERMITTED AND IMPLIED PROVISIONS OF MOTOR VEHICLE
12 LIABILITY POLICY. (1) An owner's policy of liability insurance shall:
13 (a) Designate by explicit description or by appropriate reference all
14 motor vehicles with respect to which coverage is to be granted; and
15 (b) Insure the person named therein and any other person, as insured,
16 using any such described motor vehicles with the express or implied per-
17 mission of the named insured, against loss from the liability imposed by
18 law for damages arising out of the ownership, maintenance or use of the
19 motor vehicles within the United States of America or the Dominion of Can-
20 ada, subject to limits exclusive of interest and costs, with respect to
21 each motor vehicle, as provided in section 49-117, Idaho Code.
22 (2) An operator's policy of liability insurance shall insure the person
23 named as insured therein against loss from the liability imposed upon him by
24 law for damages arising out of the use by him of any motor vehicle not owned
25 by him, within the same territorial limits and subject to the same limits of
26 liability as are set forth in subsection (1) of this section with respect to
27 an owner's policy of liability insurance.
28 (3) A motor vehicle liability policy shall state the name and address of
29 the named insured, the coverage afforded by the policy, the premium charged
30 therefor, the policy period and the limits of liability, and shall contain an
31 agreement or be indorsed that insurance is provided in accordance with the
32 coverage defined in this chapter as respects bodily injury and death or prop-
33 erty damage, or both, and is subject to all the provisions of this chapter.
34 (4) A motor vehicle liability policy shall not insure any liability under
35 any worker's compensation law as provided in title 72, Idaho Code, nor any
36 liability on account of bodily injury to or death of an employee of the
37 insured while engaged in the employment, other than domestic, of the insured,
38 or while engaged in the operation, maintenance or repair of any described
39 motor vehicle nor any liability for damage to property owned by, rented to, in
40 charge of or transported by the insured.
41 (5) Every motor vehicle liability policy shall be subject to the follow-
42 ing provisions which need not be contained therein:
43 (a) The policy may not be canceled or annulled as to any liability by any
2
1 agreement between the insurance carrier and the insured after the occur-
2 rence of any injury or damage covered by the motor vehicle liability pol-
3 icy.
4 (b) Satisfaction by the insured of a judgment for injury or damage shall
5 not be a condition precedent to the right or duty of the insurance carrier
6 to make payment on account of the injury or damage.
7 (c) The insurance carrier shall have the right to settle any claim cov-
8 ered by the policy, and if the settlement is made in good faith, the
9 amount shall be deductible from the limits of liability specified in sub-
10 section (1)(b) of this section.
11 (d) The policy and its written application, if any, and any rider or
12 indorsement which does not conflict with the provisions of this chapter
13 shall constitute the entire contract between the parties.
14 (6) Any policy which grants the coverage required for a motor vehicle
15 liability policy may also grant any lawful coverage in excess of or in addi-
16 tion to the coverage specified for a motor vehicle liability policy, and any
17 excess or additional coverage shall not be subject to the provisions of this
18 chapter. With respect to a policy which grants an excess of additional cover-
19 age the term "motor vehicle liability policy" shall apply only to that part of
20 the coverage which is required by this section.
21 (7) Any motor vehicle liability policy may provide that the insured shall
22 reimburse the insurance carrier for any payment the insurance carrier would
23 not have been obligated to make under the terms of the policy except for the
24 provisions of this chapter.
25 (8) Any motor vehicle liability policy may provide for the prorating of
26 the insurance with other valid and collectible insurance.
27 (9) The requirements for a motor vehicle liability policy may be ful-
28 filled by the policies of one (1) or more insurance carriers which policies
29 together meet the requirements of this chapter.
30 (10) Any binder issued pending the issuance of a motor vehicle liability
31 policy shall be deemed to fulfill the requirements for such a policy.
32 (11) When the negligent operation of a loaned vehicle results in the death
33 or injury to a person or personal property, except for the loaned vehicle, and
34 at the time of the negligent operation of the loaned vehicle the operator of
35 the loaned vehicle is insured under a motor vehicle liability policy complying
36 with the financial responsibility law of this state, primary coverage for the
37 death of or injury to a person or personal property, except for the loaned
38 vehicle, shall be provided by the operator's motor vehicle liability policy.
39 The insurance policy of the owner of the loaned vehicle shall provide second-
40 ary or excess coverage for the death of or injury to a person or personal
41 property, however the loaned vehicle owner's insurance shall provide primary
42 coverage for damage to the loaned vehicle.
43 (a) For the purpose of this subsection, "loaned vehicle" means a motor
44 vehicle which is provided for temporary use without charge to the operator
45 by an entity licensed under chapter 16, title 49, Idaho Code, for the pur-
46 pose of demonstrating the vehicle to the operator as a prospective pur-
47 chaser, or as a convenience to the operator during the repairing or ser-
48 vicing of a motor vehicle for the operator, regardless of whether such
49 repair or service is performed by the owner of the loaned vehicle or by
50 some other person or business.
51 (b) Should the owner of a motor vehicle receive any compensation from or
52 on behalf of the operator for the temporary use of the motor vehicle,
53 excluding any compensation provided to the owner as a result of the
54 repairing or servicing of a motor vehicle for the operator, the owner's
55 insurance coverage shall be primary and the operator's motor vehicle
3
1 insurance shall be secondary or excess.
2 (12) No motor vehicle liability policy providing coverage beyond state
3 mandated minimum limits shall provide a reduced level of coverage to any
4 insured's family or household member or other authorized user except as pro-
5 vided in section 41-2510, Idaho Code.
6 SECTION 2. That Section 49-2417, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 49-2417. OWNER'S TORT LIABILITY FOR NEGLIGENCE OF ANOTHER -- SUBROGATION.
9 (1) Every owner of a motor vehicle is liable and responsible for the death of
10 or injury to a person or property resulting from negligence in the operation
11 of his motor vehicle, in the business of the owner or otherwise, by any person
12 using or operating the vehicle with the permission, expressed or implied, of
13 the owner, and the negligence of the person shall be imputed to the owner for
14 all purposes of civil damages.
15 (2) The liability of an owner for imputed negligence imposed by the pro-
16 visions of this section and not arising through the relationship of principal
17 and agent or master and servant is limited to the amounts set forth under
18 "proof of financial responsibility" in section 49-117, Idaho Code, or the lim-
19 its of the liability insurance maintained by the owner, whichever is greater.
20 (3) In any action against an owner for imputed negligence as imposed by
21 the provisions of this section the operator of the vehicle whose negligence is
22 imputed to the owner shall be made a defendant party if personal service of
23 process can be had upon that operator within Idaho. Upon recovery of a judg-
24 ment, recourse shall first be had against the property of the operator so
25 served.
26 (4) In the event a recovery is had under the provisions of this section
27 against an owner for imputed negligence the owner is subrogated to all the
28 rights of the person injured and may recover from the operator the total
29 amount of any judgment and costs recovered against the owner. If the bailee of
30 an owner with the permission, expressed or implied, of the owner, permits
31 another to operate the motor vehicle of the owner, then the bailee and the
32 driver shall both be deemed operators of the vehicle of the owner, within the
33 meaning of subsections (3) and (4) of this section.
34 (5) Where two (2) or more persons are injured or killed in one (1) acci-
35 dent, the owner may settle or pay any bona fide claim for damages arising out
36 of personal injuries or death, whether reduced to a judgment or not, and the
37 payments shall diminish to the extent of the owners' total liability on
38 account of the accident. Payments so made, aggregating the full sum of fifty
39 thousand dollars ($50,000), shall extinguish all liability of the owner here-
40 under to the claimants and all other persons on account of the accident. Lia-
41 bility may exist by reason of imputed negligence, pursuant to this section,
42 and not arising through the negligence of the owner nor through the relation-
43 ship of principal and agent nor master and servant.
44 (6) If a motor vehicle is sold under a contract of conditional sale
45 whereby the title to the motor vehicle remains in the vendor, the vendor or
46 his assignee shall be deemed an owner within the provisions of this section.
47 (7) An owner that rents or leases a motor vehicle to a person shall not
48 be liable under the laws of the state of Idaho or a political subdivision
49 thereof, by reason of being the owner of the vehicle, for harm to persons or
50 property that results or arises out of the use, operation, or possession of
51 the vehicle during the period of the rental or lease if:
52 (a) The owner is engaged in the trade or business of renting or leasing
53 motor vehicles; and
4
1 (b) There is no negligence or criminal wrongdoing on the part of the
2 owner.
5
IN THE SENATE
SENATE BILL NO. 1126, As Amended
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO MOTOR VEHICLE LIABILITY; AMENDING SECTION 49-1212, IDAHO CODE, TO
3 REQUIRE THAT A MINIMUM LEVEL OF MOTOR VEHICLE LIABILITY COVERAGE BE PRO-
4 VIDED TO CERTAIN PERSONS; AND AMENDING SECTION 49-2417, IDAHO CODE, TO
5 REVISE LIABILITY PROVISIONS RELATING TO LIABILITY FOR IMPUTED NEGLIGENCE.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 3. That Section 49-1212, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 49-1212. EXPRESSED, PERMITTED AND IMPLIED PROVISIONS OF MOTOR VEHICLE
10 LIABILITY POLICY. (1) An owner's policy of liability insurance shall:
11 (a) Designate by explicit description or by appropriate reference all
12 motor vehicles with respect to which coverage is to be granted; and
13 (b) Insure the person named therein and any other person, as insured,
14 using any such described motor vehicles with the express or implied per-
15 mission of the named insured, against loss from the liability imposed by
16 law for damages arising out of the ownership, maintenance or use of the
17 motor vehicles within the United States of America or the Dominion of Can-
18 ada, subject to limits exclusive of interest and costs, with respect to
19 each motor vehicle, as provided in section 49-117, Idaho Code.
20 (2) An operator's policy of liability insurance shall insure the person
21 named as insured therein against loss from the liability imposed upon him by
22 law for damages arising out of the use by him of any motor vehicle not owned
23 by him, within the same territorial limits and subject to the same limits of
24 liability as are set forth in subsection (1) of this section with respect to
25 an owner's policy of liability insurance.
26 (3) A motor vehicle liability policy shall state the name and address of
27 the named insured, the coverage afforded by the policy, the premium charged
28 therefor, the policy period and the limits of liability, and shall contain an
29 agreement or be indorsed that insurance is provided in accordance with the
30 coverage defined in this chapter as respects bodily injury and death or prop-
31 erty damage, or both, and is subject to all the provisions of this chapter.
32 (4) A motor vehicle liability policy shall not insure any liability under
33 any worker's compensation law as provided in title 72, Idaho Code, nor any
34 liability on account of bodily injury to or death of an employee of the
35 insured while engaged in the employment, other than domestic, of the insured,
36 or while engaged in the operation, maintenance or repair of any described
37 motor vehicle nor any liability for damage to property owned by, rented to, in
38 charge of or transported by the insured.
39 (5) Every motor vehicle liability policy shall be subject to the follow-
40 ing provisions which need not be contained therein:
41 (a) The policy may not be canceled or annulled as to any liability by any
42 agreement between the insurance carrier and the insured after the occur-
43 rence of any injury or damage covered by the motor vehicle liability pol-
44 icy.
45 (b) Satisfaction by the insured of a judgment for injury or damage shall
46 not be a condition precedent to the right or duty of the insurance carrier
6
1 to make payment on account of the injury or damage.
2 (c) The insurance carrier shall have the right to settle any claim cov-
3 ered by the policy, and if the settlement is made in good faith, the
4 amount shall be deductible from the limits of liability specified in sub-
5 section (1)(b) of this section.
6 (d) The policy and its written application, if any, and any rider or
7 indorsement which does not conflict with the provisions of this chapter
8 shall constitute the entire contract between the parties.
9 (6) Any policy which grants the coverage required for a motor vehicle
10 liability policy may also grant any lawful coverage in excess of or in addi-
11 tion to the coverage specified for a motor vehicle liability policy, and any
12 excess or additional coverage shall not be subject to the provisions of this
13 chapter. With respect to a policy which grants an excess of additional cover-
14 age the term "motor vehicle liability policy" shall apply only to that part of
15 the coverage which is required by this section.
16 (7) Any motor vehicle liability policy may provide that the insured shall
17 reimburse the insurance carrier for any payment the insurance carrier would
18 not have been obligated to make under the terms of the policy except for the
19 provisions of this chapter.
20 (8) Any motor vehicle liability policy may provide for the prorating of
21 the insurance with other valid and collectible insurance.
22 (9) The requirements for a motor vehicle liability policy may be ful-
23 filled by the policies of one (1) or more insurance carriers which policies
24 together meet the requirements of this chapter.
25 (10) Any binder issued pending the issuance of a motor vehicle liability
26 policy shall be deemed to fulfill the requirements for such a policy.
27 (11) When the negligent operation of a loaned vehicle results in the death
28 or injury to a person or personal property, except for the loaned vehicle, and
29 at the time of the negligent operation of the loaned vehicle the operator of
30 the loaned vehicle is insured under a motor vehicle liability policy complying
31 with the financial responsibility law of this state, primary coverage for the
32 death of or injury to a person or personal property, except for the loaned
33 vehicle, shall be provided by the operator's motor vehicle liability policy.
34 The insurance policy of the owner of the loaned vehicle shall provide second-
35 ary or excess coverage for the death of or injury to a person or personal
36 property, however the loaned vehicle owner's insurance shall provide primary
37 coverage for damage to the loaned vehicle.
38 (a) For the purpose of this subsection, "loaned vehicle" means a motor
39 vehicle which is provided for temporary use without charge to the operator
40 by an entity licensed under chapter 16, title 49, Idaho Code, for the pur-
41 pose of demonstrating the vehicle to the operator as a prospective pur-
42 chaser, or as a convenience to the operator during the repairing or ser-
43 vicing of a motor vehicle for the operator, regardless of whether such
44 repair or service is performed by the owner of the loaned vehicle or by
45 some other person or business.
46 (b) Should the owner of a motor vehicle receive any compensation from or
47 on behalf of the operator for the temporary use of the motor vehicle,
48 excluding any compensation provided to the owner as a result of the
49 repairing or servicing of a motor vehicle for the operator, the owner's
50 insurance coverage shall be primary and the operator's motor vehicle
51 insurance shall be secondary or excess.
52 (12) No motor vehicle liability policy providing coverage beyond state
53 mandated minimum limits shall provide a reduced level of coverage to any
54 insured's family or household member or other authorized user except as pro-
55 vided in section 41-2510, Idaho Code.
7
1 SECTION 4. That Section 49-2417, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 49-2417. OWNER'S TORT LIABILITY FOR NEGLIGENCE OF ANOTHER -- SUBROGATION.
4 (1) Every owner of a motor vehicle is liable and responsible for the death of
5 or injury to a person or property resulting from negligence in the operation
6 of his motor vehicle, in the business of the owner or otherwise, by any person
7 using or operating the vehicle with the permission, expressed or implied, of
8 the owner, and the negligence of the person shall be imputed to the owner for
9 all purposes of civil damages.
10 (2) The liability of an owner for imputed negligence imposed by the pro-
11 visions of this section and not arising through the relationship of principal
12 and agent or master and servant is limited to the amounts set forth under
13 "proof of financial responsibility" in section 49-117, Idaho Code, or the lim-
14 its of the liability insurance maintained by the owner, whichever is greater.
15 (3) In any action against an owner for imputed negligence as imposed by
16 the provisions of this section the operator of the vehicle whose negligence is
17 imputed to the owner shall be made a defendant party if personal service of
18 process can be had upon that operator within Idaho. Upon recovery of a judg-
19 ment, recourse shall first be had against the property of the operator so
20 served.
21 (4) In the event a recovery is had under the provisions of this section
22 against an owner for imputed negligence the owner is subrogated to all the
23 rights of the person injured and may recover from the operator the total
24 amount of any judgment and costs recovered against the owner. If the bailee of
25 an owner with the permission, expressed or implied, of the owner, permits
26 another to operate the motor vehicle of the owner, then the bailee and the
27 driver shall both be deemed operators of the vehicle of the owner, within the
28 meaning of subsections (3) and (4) of this section.
29 (5) Where two (2) or more persons are injured or killed in one (1) acci-
30 dent, the owner may settle or pay any bona fide claim for damages arising out
31 of personal injuries or death, whether reduced to a judgment or not, and the
32 payments shall diminish to the extent of the owners' total liability on
33 account of the accident. Payments so made, aggregating the full sum of fifty
34 thousand dollars ($50,000), shall extinguish all liability of the owner here-
35 under to the claimants and all other persons on account of the accident. Lia-
36 bility may exist by reason of imputed negligence, pursuant to this section,
37 and not arising through the negligence of the owner nor through the relation-
38 ship of principal and agent nor master and servant.
39 (6) If a motor vehicle is sold under a contract of conditional sale
40 whereby the title to the motor vehicle remains in the vendor, the vendor or
41 his assignee shall be deemed an owner within the provisions of this section.
STATEMENT OF PURPOSE
RS 16843
This bill is one of a series proposed to modernize and
streamline judicial and legal proceedings in automobile insurance
litigation. These revisions to current law allow insureds to
make claims against insurance policy amounts for which premiums
have been collected. This protects family members, passengers
and authorized users of the insured person's vehicle.
FISCAL NOTE
This bill will have no fiscal impact.
Contact
Name: Senator Brent Hill
Phone: 332-1315
Barbara Jorden
Phone: 345-1890
STATEMENT OF PURPOSE/FISCAL NOTE S 1126